HB 345, the Alabama Historic Rehabilitation Tax Credit Bill, sponsored by Representative Victor Gaston (R-Mobile) and 88 co-sponsors, passed the House Ways and Means Education Committee last week.

In the committee meeting, Rep. Gaston introduced the bill. An amendment was offered that would shorten the sunset provision in the bill from 10 years to five years and would cap the credits from $200 million to $100 million. The amendment was accepted, and HB 345 received a unanimous favorable report.

These same provisions were added to the Senate substitute bill, SB 262, the companion legislation by Senator Jabo Waggoner (R-Vestavia Hills) and 28 co sponsors, that passed the Senate Committee on Finance Taxation and Education a few weeks ago.

SB 262 also equally divides the allocation of the credits annually among the state’s Seven Congressional Districts. HB 345 doesn’t include this provision. HB 345 is pending final passage in the House.

Alabama REALTORS® support SB 262/HB 345, the renewal of the Alabama Historic Rehabilitation Tax Credit. The three-year tax credit expired on May 15, 2016. The historic tax credit provided twenty million dollars in tax credits annually to rehabilitate historic structures built prior to 1936. Commercial projects could apply and receive up to five million ($5,000,000) per commercial project. Qualifying residential projects could apply and receive up to fifty thousand ($50,000) over a three-year period. The program was successful and enthusiastically supported by historic preservationists, municipal leaders, and real estate professionals and developers across the state.